Hiring Incentives to Restore Employment Act

Sometimes we get tips on how to save money and do business better that have nothing to do with insurance.  And that’s fine with us.  There’s a big picture out there after all.

Signed into law on March 18th was the Hiring Incentives to Restore Employment Act, otherwise known as the HIRE act (that works out nice, huh?).  With this comes new tax incentives for businesses who hire formerly unemployed workers, retain workers, and purchase new equipment to replace old equipment that is losing it’s value.

Here are a few quick key points worth knowing.

Payroll Tax Exemption:

For those employers hiring a formerly unemployed worker under certain criteria a forgiveness is given for the 6.2% Federal Social Security contribution required under the Federal Insurance Contribution Act.

Retention Tax Credit:

For each worker who qualifies for the previously mentioned payroll tax exemption there is an addition credit equal to the lesser of 6.2% of wages paid in 2010 or $1000.

Expensing Under Section 179:

Extends the increase in initial year expensing given in Section 179 to $250,000 for assets replacing those which would have otherwise depreciated over years while increasing the phase out threshold to $800,000 for calendar or fiscal year 2010 given that one’s net income is not reduced below $0.

Some of that sounds like English and some does not, but we’re always glad to answer questions if you have any.

As always you can leave us a comment below, follow us on Twitter, or head over to Wolpert.com for anything else.

Extra thanks to AAF for the money-saving tip.

Published in: on March 25, 2010 at 6:04 pm  Leave a Comment  

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